Dallas, Texas 07/09/2013 (Financialstrend) – Although the dividends per year have been declining of ARMOUR Residential REIT, Inc (NYSE:ARR), it is still admired to be thin on the ground amongst the REIT companies that obtain a high yield of Investco Mortgage Capital Inc (NYSE:IVR).
The shares of ARMOUR Residential REIT, Inc (NYSE:ARR) are currently trading at $4.31, up by 0.23%. The shares opened at $4.31
Unfortunately, the monthly dividend of ARMOUR Residential REIT, Inc (NYSE:ARR), was cut thrice in 2012 and twice in the current year, raising suspicion amongst the investors which might tend to be dangerous for ARMOUR Residential REIT, Inc, as further cuts might lead several investors to reconsider their investments and hence, depreciate further trading and expansion opportunities of the company.
It is estimated that US long-term bond yields are currently moving upwards. With this trend, ARMOUR Residential REIT, Inc’s (NYSE:ARR), interest spreads are expected to grow in the coming quarters, stopping the dividend cuts and raising dividends, which could eventually stop the tumbling monthly dividends due to which it lost almost a quarter of its value this year, so far. But for now the company might experience high risk and less desirability due to its consistent cuts in dividend.
An externally-managed residential investment trust ARMOUR Residential REIT, Inc. (NYSE:ARMOUR) is primarily engaged in the business of investment in hybrid and non hybrid, residential mortgage backed securities both adjustable rate and fixed-rate, collectively referred to as Agency RMBS Securities. The securities in which the company invests are either issued by or are guaranteed by a US Govt. sponsored entity (GSE), like Fannie Mae- Federal National Mortgage Association, Ginnie Mae- Government National Mortgage Administration and Freddie Mac- Federal Home Loan Mortgage Corporation. The company is allowed to invest a specific portion of its portfolio in unsecured notes and bonds issued by US Govt.’s chartered entities collectively called the Agency Debt. As on December 31, 2012 the company’s portfolio consisted of only Agency Securities